Reference no: EM132573818

Question 1: last month when a company had an opening inventory of 16500 units and a closing inventory of 18000 units, the profit using absorption costing was $40000. the fixed production overhead rate was $10 per unit. what would the profit for last month have been using marginal costing?

Question 2: last month a manufacturing company's profit was $2000, calculated using absorption principles. if marginal costing principle has been used, a loss of $3000 would have occurred. the company's fixed production cost is $2 per unit. sales last month were 10000 units. what was last month's production in units?

Question 3: bush wood farm produce a certain type of natural herb immune booster which is sold at $30 per unit; direct materials $6 per unit, direct labour $7.50 per unit, variable overheads 2.50 per unit, fixed overhead absorption rate $5 per unit. budgeted production for the month was 5000 units although the company managed to produce 5800 units, selling 5200 of them and incurred fixed overhead costs of $27400. what is the absorption costing profit or loss for the month?

Question 4: you are the management accountant of the company offering special packages for holidaymakers. accommodation facilities are in the form of chalets with a capacity of 5 family members per chalet. for the whole month of december 2019, it hosted 300 holidaymakers, which is only 95% of full capacity and all the chalets were fully occupied. package 1 has a daily rate of $120 per person, package 2 has a daily rate of $200 per person and the sales mix ratio is 60:40 respectively. monthly variable costs are $350000 for package 1 and $400000 for package 2 with confirmed fixed costs of $300000.a) how many chalets were occupied for package 1 during december? b)how much revenue was required to break even in december?

Question 5: the overhead absorption for product P is $4 per machine hour. each unit of P requires 3 machine hours. inventories of product P last period were; opening inventory 2400 units, closing inventory 2700, compared with marginal costing profit for the period, the absorption costing profit for product P will be?